Tech stocks rally rolls on as US-China talks underway ~ EconomyLens.com

New York (AFP) – European and US stock markets climbed Thursday, with Wall Street indices notching fresh records as a tech-fueled rally rolled on while Chinese leader Xi Jinping welcomed US President Donald Trump in Beijing. In the latest sign of bullishness towards artificial intelligence, Cisco Systems surged 13.4 percent after lifting its earnings report, while semiconductor startup Cerebras piled on 68.2 percent in its debut session on the Nasdaq.

“The sentiment remains predominantly bullish,” said Briefing.com analyst Patrick O’Hare. “You have a market that continues to press ahead despite a lot of calls about it being overextended on a short-term basis and due for a pullback.” All three major US indices finished solidly higher, with the S&P 500 and Nasdaq ending at new all-time highs.

In Beijing, Xi greeted Trump with a red-carpet welcome at the opulent Great Hall of the People, complete with military band fanfare, a 21-gun salute, and schoolchildren chanting “Welcome!” Seemingly enjoying the ceremony, the 79-year-old Trump said “the relationship between China and the USA is going to be better than ever before.” However, Xi also warned Washington against crossing China on Taiwan. “If mishandled, the two nations could collide or even come into conflict, pushing the entire China-US relationship into a highly perilous situation,” Xi said, according to state media.

Markets have also been hoping the summit boosts the odds of a US-Iran peace deal that would reopen the Strait of Hormuz. Trump told Fox News that Xi had offered China’s help to open the Hormuz Strait — the key oil route largely blocked since the US-Iran war erupted — and that Xi had also pledged not to send military equipment to aid Iran. Oil prices were choppy on Thursday, ending narrowly higher.

“From our vantage point, it looks like it’s been mostly more of a glad-handing type of engagement, a lot of flattery, not a lot of substance really to change things,” O’Hare said. European equities finished the day higher, with London advancing 0.5 percent after data showed the UK economy had a solid start to the year, though the Middle East war and political turmoil threatened to cloud the outlook. The British pound fell against both the dollar and the euro as pressure builds on British Prime Minister Keir Starmer.

Britain’s health minister Wes Streeting resigned while Greater Manchester mayor Andy Burnham unveiled a bid to return to parliament, as political maneuvering increased to oust Starmer. Frankfurt won more than one percent, and Paris gained 0.9 percent, lifted by tech stocks. Across Asia, Shanghai and Tokyo slid while Hong Kong was flat.

– Key figures at around 2015 GMT –

Brent North Sea Crude: UP 0.1 percent at 105.72 a barrel

West Texas Intermediate: UP 0.2 percent at 101.17 a barrel

New York – DOW: UP 0.8 percent at 50,063.46 (close)

New York – S&P 500: UP 0.8 percent at 7,501.24 (close)

New York – Nasdaq Composite: UP 0.9 percent at 26,635.22 (close)

London – FTSE 100: UP 0.5 percent at 10,372.93 (close)

Paris – CAC 40: UP 0.9 percent at 8,082.27 (close)

Frankfurt – DAX 30: UP 1.3 percent at 24,456.26 (close)

Tokyo – Nikkei 225: DOWN 1.0 percent at 62,654.05 (close)

Hong Kong – Hang Seng Index: FLAT at 26,389.04 (close)

Shanghai – Composite: DOWN 1.5 percent at 4,177.92 (close)